August 2011
Economic Development 
Interest Rates Drop
With the stock market spinning and economic growth news downshifting, several key economic development funding tools have recently posted new lower interest rates in order to give an additional incentive for business growth in Lancaster County.
On Tuesday, August 9th, the SBA 504 debenture rates posted 10-month lows, with the 20-year full term debenture fixed rate dropping to 5.15% and the 20-year refinance rate moving to 5.50%. In a similar fashion, the 10-year SBA 504 full-term debenture fixed-rate move to just about 4.00%.
State economic development funding resources have followed a similar rate reduction pattern with Small Business First, PIDA, and First Industries Fund rates dropping to 4.00% fixed for up to 15 years. PIDA projects in Lancaster City will qualify for an additional 1.00% reduction to 3.00% fixed for 15 years.
EDC Finance is typically involved in financing 30-50% of commercial real estate and equipment project costs in a subordinate lien position to the bank. The current rate environment continues to provide an excellent opportunity to allow commercial clients to hedge a project’s total financing package with these low long-term fixed rates.
. . .
EDC Finance is now e504
On Tuesday, August 9th, EDC Finance received its first approval of an SBA 504 project submitted electronically through the new e504 system. With e504, EDC Finance has been given authorization to submit SBA 504 loan files electronically, saving both time and money for the client when it comes to final approval of a 504 project. EDC Finance is now equipped to handle the new e504 loan process with all of its project activity with the Small Business Administration.
. . .
Recent Projects completed & funded by
EDC Finance Corporation:
COMMERCIAL ACQUISITION
Loan Type: SBA 504
Location: West Earl Twp.
Loan Amount: $620,000
Industry: Truck equipment – Sales, Service, & Repair
Project: Real estate acquisition of leased facility
First Lender: Susquehanna Bank
RESTAURANT EXPANSION
Loan Type: SBA 504
Location: E. Lampeter Twp.
Loan Amount: $306,000
Industry: Full Service Restaurant
Project: Acquisition and remodel of existing restaurant
property
First Lender: Community First Fund
Visit the EDC Finance Corporation home page for the most current loan rates. |
